Yes, the M1 now includes some components that were previously only counted in M2:
> This suggests that the rapid acceleration in M1 since May 2020 is mainly from money moving out of the non-M1 components of M2 into M1, rather than reflecting any acceleration in the demand for transaction balances.
The chart looks shocking without context, but it’s also very misleading without the context.
> This suggests that the rapid acceleration in M1 since May 2020 is mainly from money moving out of the non-M1 components of M2 into M1, rather than reflecting any acceleration in the demand for transaction balances.
The chart looks shocking without context, but it’s also very misleading without the context.